This case involves a man, JR, responding to a woman who has contacted him as her real estate agent to sell her father’s house. She is anxious to sell it for $70,000. After JR looks at the house he realizes that it would be just right for his son who needs a small house, but he determines that it is actually worth at least $100,000.
The dilemma is that he could easily save his son $30,000 and get him this nice house, but to do so would be to take advantage of the woman who owns it. To resolve the dilemma he could do one of the following: (a) either have his son purchase the house for the asking price of $70,000, allowing the woman to assume that this is the value, or (b) inform the woman that the house is really worth $100,000 and mention that his son is willing to purchase for the full asking price.